Corporation Tax Act 2009

311 Amounts not fully recognised for accounting purposes: introduction U.K.

(1) Section 312 applies for the purpose of determining the credits and debits which a company is to bring into account for a period for the purposes of this Part in the following case.

(2) The case is where—

(a) the company is, or is treated as, a party to a creditor relationship in the period,

[F1 (b) condition A, B or C is met, and

(c) an amount is not fully recognised for the period in respect of the creditor relationship as a result of the application of generally accepted accounting practice in relation to the creditor relationship and the debtor relationship, contribution or securities referred to in the condition that is met.]

(3) Condition A is that—

(a) the company is or is treated as a party to a debtor relationship in the period, and

(b) an amount is not fully recognised for the period in respect of the debtor relationship as a result of the application of generally accepted accounting practice in relation to the [F2 creditor relationship and the debtor] relationship.

(4) Condition B is that—

(a) an amount (a “relevant capital contribution”) has at any time been contributed to the company which forms part of its capital for the period, and

(b) an amount is not fully recognised for the period in respect of the relevant capital contribution as a result of the application of generally accepted accounting practice in relation to the [F3 creditor relationship and the relevant capital] contribution.

[F4 (4A) Condition C is that—

(a) the company has issued securities that form part of its capital for the period, and

(b) an amount is not fully recognised for the period in respect of the securities as a result of the application of generally accepted accounting practice in relation to the creditor relationship and the securities.]

(5) It does not matter for the purposes of subsection (4) whether the contribution forms part of the company's share capital or other capital for the period.

(6) For the purposes of this section an amount is not fully recognised for a period in respect of a relationship of a company [F5 , a contribution to it or securities issued by it] if—

(a) no amount in respect of the relationship[F6 , contribution or securities] is recognised in determining its profit or loss for the period, or

(b) an amount is so recognised in respect of only part of the relationship[F6 , contribution or securities].

Textual Amendments

F1 S. 311(2)(b) (c) substituted (with effect in accordance with Sch. 30 para. 2(8)(9) of the commencing Act) by Finance Act 2009 (c. 10) , Sch. 30 para. 2(2)

F2 Words in s. 311(3)(b) inserted (with effect in accordance with Sch. 30 para. 2(8)(9) of the commencing Act) by Finance Act 2009 (c. 10) , Sch. 30 para. 2(3)

F3 Words in s. 311(4)(b) inserted (with effect in accordance with Sch. 30 para. 2(8)(9) of the commencing Act) by Finance Act 2009 (c. 10) , Sch. 30 para. 2(4)

F4 S. 311(4A) inserted (with effect in accordance with Sch. 30 para. 2(8)(9) of the commencing Act) by Finance Act 2009 (c. 10) , Sch. 30 para. 2(5)

F5 Words in s. 311(6) substituted (with effect in accordance with Sch. 30 para. 2(8)(9) of the commencing Act) by Finance Act 2009 (c. 10) , Sch. 30 para. 2(6)(a)

F6 Words in s. 311(6) substituted (with effect in accordance with Sch. 30 para. 2(8)(9) of the commencing Act) by Finance Act 2009 (c. 10) , Sch. 30 para. 2(6)(b)